- With a rate hike already priced in by the markets, the focus will turn to the Fed’s forward guidance - Nordea
Market news
15 March 2017
With a rate hike already priced in by the markets, the focus will turn to the Fed’s forward guidance - Nordea
Noreda Markets shares the widely held expectation of a 25bp increase in the fed funds rate on Wednesday, to a range of 0.75-1.00%.
"With a rate hike already priced in by the markets, the focus will turn to the Fed's forward guidance...We expect the Fed again to emphasise that the pace of rate hikes will be "only gradual"." Nordea projects.
Regarding the dot plot, Nordea believes the FOMC's median projections of the fed funds rate at the end of 2017 and 2018 are unlikely to change, consistent with three rate hikes both this year and in 2018, in line with the recent projection from December.
Finally, Nordea expects The FOMC's neutral rate estimate to remain unchanged at 3.0%.
Source: Nordea Research. efxnews.
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